Sounds exciting. Not so much. Last night me and my husband curled up under the covers and revamped our budget. Probably makes most people turned on just thinking about it ;)
So the other day we set our appointment to sign off all of the documents for the loan, but we were asked to bring in our credit card bills. I mentioned to the hubby, "so what are we going to say when she asked why they have increased over the past 3 months." Looking at me dumbfounded he responds "how did they increase?" This conversation continues in which he asks the hard question; Even with the loan, can we afford to live in our house, or do we need to move and start over? It wasn't a threat, and he was very level headed indicating that sometimes reality isn't what we want it to be.
So after the kids went to bed, we curled up with my laptop and hammered out a more realistic budget. It included a lot of things that I didn't include before that had been ending up on credit cards. Based on this budget, we have a small shortfall for about the next 3 months, but then we actually have an extra $23 per month ongoing. Not a lot but it's something.
We also estimated that it will be about 3 years before we pay off the residual on our actual credit cards. But at least we are moving in the right direction. It's weird how in the midst of your darkest hour, you finally start to feel better.
This communication thing was a long time coming, but much needed. Hopefully, the transparency will do us good.
Showing posts with label budgeting. Show all posts
Showing posts with label budgeting. Show all posts
Friday, May 8, 2009
Sunday, September 14, 2008
"Budget Wins"...
As I mentioned yesterday there are a few ways I know to increase your "Budget Wins" in your gift budget:
Shop off season: Since you will have an influx of "gift money" year round you can start buying before your events and holidays come up. For instance a great end of season sale in March could have some great discounts on sweaters, outerwear, sports equipment (hockey, snowboarding), or other fun gifts such as sleds. These items will likely cost you more in November/December, but your dollar will go much further when they are on sale earlier in the year. Note: Watch out for buying items that are too "trendy." They may be out of style by the time they are given thus making them undesirable.
Buy in bulk: Many stores (especially for children's clothing) offer discounts if you buy 2 or more of the same/similar items. When buying a gift, think ahead to who else you may need to shop for in the future. Could you pick up a great hoodie for a discount now, instead of overspending later on in the year and receive a discount.
Be creative: If you know events are coming up you can use your own talents to reduce the cost of gifts and increase your "wins." Knowing that a friend would be having a baby in 6 months I used some of the yarn I had lying around (from other discarded projects) and made a beautiful baby blanket. Coupled with a $7 plush toy, the gift was well received and I was $23 underbudget. Use whatever talents you have to come up with great gifts (services are always welcome) and save money.
Get to the point(s): Remember all of those points cards/frequent shopper cards you have filling up your wallet, check those balances. Many point programs can be used to buy merchandise or gift certificates that you can use to buy your gifts, without costing you a dime!! Don't worry if you don't have enough for the full amount, many programs will let you pay the difference in cash which can reduce what you would pay for an item, or get a much better gift for a much cheaper price.
These ideas should help to reduce your expenses on gifts within the year and avoid untimely events from ruining your cash flow. Take the extra money and put it on your debts or buy something you need. Plus, actively keeping tabs on your gift spending will make it easier to be more organized. Afterall, I am 75% done my Christmas shopping already.
Stats - no change - but my eBay auctions are up tomorrow -wish me luck!!!
Coming up tomorrow: My Husband, My "Client"
Shop off season: Since you will have an influx of "gift money" year round you can start buying before your events and holidays come up. For instance a great end of season sale in March could have some great discounts on sweaters, outerwear, sports equipment (hockey, snowboarding), or other fun gifts such as sleds. These items will likely cost you more in November/December, but your dollar will go much further when they are on sale earlier in the year. Note: Watch out for buying items that are too "trendy." They may be out of style by the time they are given thus making them undesirable.
Buy in bulk: Many stores (especially for children's clothing) offer discounts if you buy 2 or more of the same/similar items. When buying a gift, think ahead to who else you may need to shop for in the future. Could you pick up a great hoodie for a discount now, instead of overspending later on in the year and receive a discount.
Be creative: If you know events are coming up you can use your own talents to reduce the cost of gifts and increase your "wins." Knowing that a friend would be having a baby in 6 months I used some of the yarn I had lying around (from other discarded projects) and made a beautiful baby blanket. Coupled with a $7 plush toy, the gift was well received and I was $23 underbudget. Use whatever talents you have to come up with great gifts (services are always welcome) and save money.
Get to the point(s): Remember all of those points cards/frequent shopper cards you have filling up your wallet, check those balances. Many point programs can be used to buy merchandise or gift certificates that you can use to buy your gifts, without costing you a dime!! Don't worry if you don't have enough for the full amount, many programs will let you pay the difference in cash which can reduce what you would pay for an item, or get a much better gift for a much cheaper price.
These ideas should help to reduce your expenses on gifts within the year and avoid untimely events from ruining your cash flow. Take the extra money and put it on your debts or buy something you need. Plus, actively keeping tabs on your gift spending will make it easier to be more organized. Afterall, I am 75% done my Christmas shopping already.
Stats - no change - but my eBay auctions are up tomorrow -wish me luck!!!
Coming up tomorrow: My Husband, My "Client"
Saturday, September 13, 2008
The gift budget...
I love to give presents, thus no surprise I LOVE Christmas!!! My big problem with Christmas is that I spend far too much money, charge it because I don't have the cash, and am always in a huge rush to get my shopping done so sometimes gifts are not as thoughtful as they could be.
To combat my Christmas issue (and other gift giving times of year) I implemented the "gift budget" this year. To make the gift budget, I used Excel but you could take any sheet of paper (old napkin, whatever). Write down who you need to buy for this year including birthdays, christmas gifts etc. Don't forget your own kids, spouse or parents. Put an amount that you think is reasonable to spend for each person. Add a buffer for weddings, housewarmings, babies, and bridal showers that just spring up (I budget 3 of each) or ones you already know about in the year. Add up the amount you intend to spend in the year, divide by 12 and include this amount in your household budget for the year. If it doesn't fit in your budget you need to pare down on your gift buying intentions.
How the system works:
Having the money when you need it: You will actually be saving for the holidays and other events before they happen. No charging.
Being cognizant of your spending and on what: Having the budget has helped with not only decreasing what I spend on gifts, but I have actually had more thoughtful gifts because I know I have the money to buy them whenever I see something I like (and I think about it every month), as opposed to rushing out the day of and buying the first thing I can find (regardless of cost).
"Budget Wins": In some cases (more and more frequently as you get into the idea), you will be able to come in under budget for items on your gift list. I call them "Budget Wins." You have a few choices in this matter. a.) Do nothing and keep the extra money in the account for overages (see below); b.) reduce your payment next month by the amount of the win freeing up some cash flow; c.) reduce your payment in December. This one is really nice, since if you keep "winning" in your little budget game you may not have to make a payment at all in December making the holidays much easier. See tomorrows post for easy ways to make "wins" in your gift budget.
Overages: Sometimes $20 is just not enough to get that china cat you know that Grandma will love, this is where your decision making comes in. You can either a.) use up your existing "budget wins" if you have decided to not adjust your payments or pay the difference from your own spending money. This may make you think twice about the gift.
Getting Better: Make sure you note on your budget what you actually spent on a gift to identify wins and overages. In the following year you can tweak your gift budget to be more accurate.
Miscellaneous Items: I mentioned slotting in money for random (or planned) weddings, babies, etc. If some of these events don't seem to be occurring, (ie. it's mid October with no pending babies on the horizon, reduce your payments in upcoming months (or December) to offset the lack of need.
Stats - no change
To combat my Christmas issue (and other gift giving times of year) I implemented the "gift budget" this year. To make the gift budget, I used Excel but you could take any sheet of paper (old napkin, whatever). Write down who you need to buy for this year including birthdays, christmas gifts etc. Don't forget your own kids, spouse or parents. Put an amount that you think is reasonable to spend for each person. Add a buffer for weddings, housewarmings, babies, and bridal showers that just spring up (I budget 3 of each) or ones you already know about in the year. Add up the amount you intend to spend in the year, divide by 12 and include this amount in your household budget for the year. If it doesn't fit in your budget you need to pare down on your gift buying intentions.
How the system works:
Having the money when you need it: You will actually be saving for the holidays and other events before they happen. No charging.
Being cognizant of your spending and on what: Having the budget has helped with not only decreasing what I spend on gifts, but I have actually had more thoughtful gifts because I know I have the money to buy them whenever I see something I like (and I think about it every month), as opposed to rushing out the day of and buying the first thing I can find (regardless of cost).
"Budget Wins": In some cases (more and more frequently as you get into the idea), you will be able to come in under budget for items on your gift list. I call them "Budget Wins." You have a few choices in this matter. a.) Do nothing and keep the extra money in the account for overages (see below); b.) reduce your payment next month by the amount of the win freeing up some cash flow; c.) reduce your payment in December. This one is really nice, since if you keep "winning" in your little budget game you may not have to make a payment at all in December making the holidays much easier. See tomorrows post for easy ways to make "wins" in your gift budget.
Overages: Sometimes $20 is just not enough to get that china cat you know that Grandma will love, this is where your decision making comes in. You can either a.) use up your existing "budget wins" if you have decided to not adjust your payments or pay the difference from your own spending money. This may make you think twice about the gift.
Getting Better: Make sure you note on your budget what you actually spent on a gift to identify wins and overages. In the following year you can tweak your gift budget to be more accurate.
Miscellaneous Items: I mentioned slotting in money for random (or planned) weddings, babies, etc. If some of these events don't seem to be occurring, (ie. it's mid October with no pending babies on the horizon, reduce your payments in upcoming months (or December) to offset the lack of need.
Stats - no change
Friday, September 12, 2008
My first mistake....
So this whole debt repayment plan was not just come up with in August, I've actually been trying to make positive changes since the beginning of the year. August was really just my day of reckoning with the full extent of the damage.
Although I have been in and out debt over the years, I finally figured out one of main reasons for this- I'm working TOO HARD to pay off my debt. That's right, I've been too diligent! My major issue is that I have been putting every penny onto my debt, but forgetting that by paying off my debt with all of my extra funds I didn't have any left over for those extras and suprises.
So therefore I have now started a planned payment plan. I make sure that I put enough away for the major expenses every month so that by the time the actual payment comes around I will have the cash to pay for it. I think I might actually be able to pay for my house and car insurance without charging it.
Therefore, my new plan is to increase my debt (to be paid off in 3 years as indicated before) and try to make extra money instead of diverting the every dollar into debt payment. It may take a little longer, but hopefully it'll break the cycle once and for all.
Stats - No changes from last time.
Although I have been in and out debt over the years, I finally figured out one of main reasons for this- I'm working TOO HARD to pay off my debt. That's right, I've been too diligent! My major issue is that I have been putting every penny onto my debt, but forgetting that by paying off my debt with all of my extra funds I didn't have any left over for those extras and suprises.
So therefore I have now started a planned payment plan. I make sure that I put enough away for the major expenses every month so that by the time the actual payment comes around I will have the cash to pay for it. I think I might actually be able to pay for my house and car insurance without charging it.
Therefore, my new plan is to increase my debt (to be paid off in 3 years as indicated before) and try to make extra money instead of diverting the every dollar into debt payment. It may take a little longer, but hopefully it'll break the cycle once and for all.
Stats - No changes from last time.
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